Australia urged to sieze ‘strategic opportunity’ caused by Iran war to widen Defence’s focus in Indian Ocean
Australia is being encouraged to seize the moment and use the environment caused by the Iran war to help shape a key trading region.
Australia should take advantage of a moment of “genuine strategic opportunity” caused by the Iran war to widen Defence’s focus to a key part of the Indian Ocean.
Research published by the Lowy Institute argues the Australian military’s international engagement should be broadened to include the north-western Indian Ocean, as the area remains an artery of the global economy.
“Disrupted trade routes, an unprecedented concentration of great power assets, and the fragility of existing institutions have created a moment of genuine strategic opportunity for Canberra,” report author Alexander Lee said.
Sign up to The Nightly's newsletters.
Get the first look at the digital newspaper, curated daily stories and breaking headlines delivered to your inbox.
By continuing you agree to our Terms and Privacy Policy.“After a century of relying on others to secure the Indian Ocean, Australia now has the geography, the alliances, and the credibility to chart its own course.”
The think tank points to the ocean’s trade being concentrated in “choke points” such as the Strait of Hormuz, Suez Canal, and Strait of Malacca.
Its report comes after the US-led war on Iran caused fuel and fertiliser costs to rise, in addition to damage to oil-refining capacity and reserves.
The Trump administration’s war is estimated to cost $2 billion each day.
The research argues Australia is unusually well positioned to shape the post-war Indian Ocean order as it has the region’s largest exclusive economic zone and strong relationships with regional powers.
“The Iran war and intensifying great power competition have transformed the Indian Ocean from a strategic backwater into one of the most volatile maritime theatres of the decade,” it said.
Dr Lee is urging the federal government to use the conflict in the Middle East to deepen cooperation with Japan, India and France in a bid to help keep the ocean open and stable - before China fills the vacuum left by a distracted Washington.
The Iran war has shown that disruptions at the western edge of the Indian Ocean’s trade corridors threaten Australian and regional economic security just as much as they would in the north-east part, the research found.
